90 per cent of Canadian organizations use SM

August 16, 2010

Written by SAS/Leger Marketing

Aug. 17, 2010 - The vast majority of Canadian executives at
large and mid-sized organizations say that social media has the
potential to impact their corporate brand and as a result are placing
more importance on its use. One in six says that social media is the
most important means for their organization to engage the public about
their brand; while 31 per cent say it plays a major role and 43 per cent
say it plays a limited role. Just ten per cent of organizations don't
bother engaging in social media. These are some of the findings of a
SAS/Leger Marketing survey of more than 1,000 Canadian executives
conducted earlier this year.

Provincially, Alberta and Ontario, and Quebec executives are more on
board than those in Atlantic Canada; with about one in five executives
(20, 19, and 15 per cent respectively) saying social media is their most
important means of communicating with the public. Just six per cent of
Atlantic Canada's executives feel this way.

In the public versus private debate, public sector executives are more
likely then private sector executives (21 per cent to 14) to say social
media is their most important means of public engagement.

"Our research is showing that governments in Canada are increasingly
embracing social media," said Dr.Alison
Brooks, Director of Public Sector Research for IDC Canada. "Deployment
costs are low, participatory gains high, and the ease and immediacy of
impact make the technologies hard to ignore. Add this to the fact that
much of the fear-mongering about the risks to privacy, security and
information management posed by social media have been dispelled and you
have a recipe for forward thinking government organizations intent on
leveraging social media channels."

At the industry level, which represents respondents from both the public
and private sector, finance and banking leads the way with 28 per cent
saying social media is the most important means of communicating with
the public about their brand. One in five advertising, media, and
communication companies (21 per cent) say the same, while only six per
cent of the health services / pharmaceutical industry say it is their
most important avenue for public engagement. Nationally, 16 per cent of
respondents say this.

"Our research has found that the public sector has some of the most
aggressive social media strategies of any market segment," said Tim
Hickernell, Lead Research Analyst with London-based Info-Tech Research
Group. "Social networks are the new citizen meeting places, where
government can quickly survey the needs of the citizenry. Social
channels are also proving to be extremely effective for government
outreach and education, because social sharing spreads the desired
messages much further than traditional media channels."

Social Media a waste of time for someNationally,
ten per cent of executives interviewed say social media is a waste of
time. From an industry perspective, 15 per cent of construction,
manufacturing, real estate and legal executives say it is a waste of
time. Less than half as many, seven per cent, of retail execs agree. The
private sector was also more skeptical than the public sector with 12
percent (versus seven per cent) saying it is a waste of time.

"Consumers are now, more than ever, keeping a close eye on our brands as
they continue to engage with social media channels at unprecedented
rates," said Lori Bieda, SAS Consultant and former Marketing Executive.
"With corporate trust at the lowest it's been in several years,
consumers are relying on social media and their social networks to shape
their buying decisions, making social media a powerful medium that
businesses can't ignore.

Ontario, for all of its leading edge social media commitment, is also
the most sceptical province when it comes to social media in general,
with 14 per cent saying it is a passing fancy that will be gone in a few
years, this compared to just three per cent in Atlantic Canada, Manitoba
and Saskatchewan, and five per cent in Quebec. On the industry side,
the advertising and communications communities are more likely than the
construction/ engineering/ manufacturing or food/ retail industries to
say it will all be gone in a few years (21 per cent versus 6 per cent
each, respectively) Nationally, 9 per cent say social media is a
passing fancy.

"The true sentiment of brands is 'out there'- in a more public form than
ever before - and delivered at speeds that can make or break brands,"
added Ms. Bieda. "Mining social media data well will empower marketers,
PR professionals, researchers and customer experience experts to drive
business forward."

Some additional stats

60 per cent of execs say their organization often or sometimes
monitors social media channels for mentions about their business.

20 per cent rarely monitor social media and 12 per cent never do it.

12 per cent of public sector execs say people who use social media are
a vocal minority whose opinions don't matter much.